Checking account after Ch 7

[Dawn1970]

When I filed Ch 7 (which I am now discharged from) I had an AmSouth checking account which was in the red for hundreds of dollars in overdraft fees. It was eventually turned over to a collection agency. I included this collection agency account in my Ch 7. In retrospect, though, I realize that I did not list AmSouth in my list of creditors because they had sold the account to someone else and I was thinking that would be 'double-listing' the account. (I probably should have double-listed it anyway to be on the safe side). I need a checking account now. I am tired of cashing my paycheck and keeping all my cash on me; this is dangerous. I called the 1-800 Amsouth info line and asked the lady if a newly-dishcharged bankruptee could open a checking account and she said yes, and even said that I could have a check/debit card, which most banks said I absolutely could not have due to the BK.
My question is, If I take my paycheck this Thursday and open up a new checking account with them, can they possibly keep that money to satisfy the old overdrawn checking account that got turned over to collections? I don't think so because after this account was sold to collections, it was discharged in the BK. But I am scared that they are trying to 'trick' me. I did, after all, give my name and Social Sec. # to the woman I spoke with on the toll free info line. What do you guys think?

[emoney]

They have the right to sieze any money in your account if the debt was not discarged. So, why risk it, find another bank. You could always pay them the money owed and that would clear up your record with the check people.
Thanks,
emoney

[CATCHMEIFYOUCAN]

Risk

I know I wouldn't take the chance! Find another bank, that's for sure !

Catchmeifyoucan

[Faith]

Checking account after Ch 7

Use another bank, but I would also send them a letter with a copy of your discharge. Even though you accidentally forgot to include a debtor in your schedule, if your case was a "no asset" Chapter, your debt is still considered discarged (absent fraud and other extenuating circumstances). This is because even if you had listed the creditor, he would have gotten zip.

By the way, I'm going through my own nightmare. I'm a bit over 30-days past my 341 and I just answered a host of questions from the bankruptcy analyst (about $120,000 in credit card debt plus student loans) and provided him with a stack of documents (bank account statements, tax records, credit reports) and it's giving me the heeby-jeeby's. My husband went through a terrible period of depression about five years ago and he lost his job, then we lost our house, and spent his 401K staying afloat until I switched from being a stay-at-home mom to breadwinner. We've been treading water for years, but finally the credit card companies raised our interest rates into the 20% plus range and doubled our minimum payments.

After my bank seized my rent money, we went to an attorney and ended up filing Chapter 7. Now, I'm terrified the trustee will challenge our Chapter 7 (the analyst said they were investigating it for substantial abuse; I think it is because the way our attorney listed our debts, it looked like they might be recent, but they are mainly old debt from when my husband first lost his job that has been transferred and shifted around chasing low interest rates). The other reason is probably because I ran my own business (successfully, it not getting rich, but paying the bills except for that soul-destroying credit card debt that built up when we had no income) so the money that comes into my household is mainly cash.

He also wanted to know why we claim so much in monthly medical expenses. But we have to have two policies, one for me and the children and the other for my husband (because he is in high risk group) and we spend so much each month for my husband's medications so it all adds up to nearly $1,500 a month in medical expenses.

Sigh, if this Chapter 7 does not go through, we are pretty much screwed. Okay, I ramble a lot. Shutting up now.

Faith

http://www.usdoj.gov/ust/eo/public_a.../abi012001.htm

http://www.detroitbankruptcylawyer.c...background.htm

[razorguns]

good luck explaining that 'no asset' provision to creditors. I stil have balances on my cr - and creditors aren't budging - and there's no help from the govt either. Disputes have been fruitless. I'm gonna have to get the big guys from trinity credit services to fix this.

r

[miss puff]

I would go to another bank. A question though. Aren't overdraft charges in a chex system database? Are you even allowed to get a checking account if your info is in this system?

Luckily, I opened a new checking account right before we filed and kept them both open just in case one of them had issues. So far neither of them have. Now I just have to decided which one to close.

[CindyLou]

Miss Puff is correct. Its not about the bankruptcy its about chex systems. A BK does not affect the ability to open a checking account at most banks as long as you do not have accounts in chex systems or similiar CRA that monitor checking accounts. I have done extensive research on options for someone in your situation because my brother is exactly where you are. The option that we finally decided on is a prepaid reloadable debit card with Western Union. If you use direct deposit there is not monthly fee. The only other fee is if you withdraw cash from an ATM. There are no checks but its the closest you can get. They do not do a credit check at all.Hope this helps.

[Kam]

Wow. Another *old* post resurfacing.